An investor wants to make a two period investment and is presented with the following investment options:

(a)	Invest for one period at 3.35% pa and then for a further single period at 3.89% pa
(b)	Invest for two periods at 3.67% pa

Select the investment option that should be chosen to maximise the return. Assume that the interest rates are compound interest rates. Round all percentage calculations to 2 decimal places.

	investment option (b)
	either, because both investment options will result in the same return
	investment option (a)